Board of Governors of the Federal Reserve System
Home Mortgage Disclosure Act
Federal Reserve Board, 20th & Constitution Avenue, N.W., Stop #N502, Washington, DC 20551 -
2013 HMDA EDITS
Consumer Financial Protection Bureau (CFPB)
Federal Deposit Insurance Corporation (FDIC)
Board of Governors of the Federal Reserve System (FRS)
Department of Housing and Urban Development (HUD)
National Credit Union Administration (NCUA)
Office of the Comptroller of the Currency (OCC)
QUICK REFERENCE TO UNDERSTANDING HMDA EDITS
HMDA edits are divided into three types: Syntactical, Validity, and Quality. Each edit questions specific reported data that should be thoroughly checked in order to ensure the data are reported accurately. These edits are defined as follows:
1. Syntactical (S) - The loan applications will not be loaded to the FFIEC database. If they should be included on the FFIEC database, the data must be corrected. Some examples are incorrect activity year used in your submission; or initial LAR data (T2 record) already on file, which indicates that a LAR with a duplicate loan application number was submitted.
2. Validity (V) - The specified data are reported incorrectly and must be corrected. The most common example is an incorrect census tract.
3. Quality (Q) - The data in question do not agree with an expected standard (value). Review for correctness and change only if erroneous data has been reported. An example is reported income that is less than or equal to $9 thousand.
An institution is expected to submit valid and accurate HMDA data that have been checked using edits approved for the particular calendar year. Institutions with data submissions that have outstanding Syntactical or Validity edits will not receive a disclosure statement until all such edits have been corrected. Data with Quality edits, if not corrected when inaccurate, will cause an incorrect disclosure statement.
2013 HMDA EDIT CHANGES:Ø NEW EDITS
Validity Edits
V108 (pg. 2) Parent name cannot equal institution name.
Macro Quality Edits
Q010 (pg. 14) The number of loan applications that report action taken type = 1 should be ≥ 20% of the total number of loan applications where action taken type = 1-6.
Ø DELETED EDITS
Loan Application Register
Q060 (pg. 9) Deleted. Captured in Q022 revision.
Ø REVISED EDITS
Transmittal Sheet
S100 (pg. 1) Edit test language modified to check for valid activity year.
Q033 (pg. 9) Removed agency code 5 from parameter.
Loan Application Register
Q002 (pg. 9) Adjustment to loan amount and edit parameter.
Q022 (pg. 9) Edit test modified to adjust edit tolerance.
Q024 (pg. 11) Adjustment to edit parameters.
Macro Quality Edits
Q011 (pg. 14) Edit test modified to adjust edit tolerance.
Q071 (pg. 15) Edit test modified to exclude institutions that do not sell loans to Ginnie Mae and adjusted edit tolerance.
Q072 (pg. 16) Edit test modified to exclude institutions that do not sell loans to Ginnie Mae and adjusted edit tolerance.
EXPLANATION OF VALIDITY EDITS 285, 295, & 300
Regulation C (Home Mortgage Disclosure Act) requires financial institutions reporting NA in the metropolitan statistical area/metropolitan division (MSA/MD) field to either enter NA or to enter correct geographic information in the other three property location fields (state, county, census tract) of the HMDA-LAR for the property in question. The reported geographic data will be verified for its validity.
Purpose: Validity edits 285 and 295 were added to the HMDA edits to comply with Regulation C. These edits are intended to verify the validity of the property location information when the MSA/MD field is reported as NA or a numeric code.
Validity edit 300 was modified to verify the validity of the census tract for the state/county combination reported regardless of what is reported in the MSA/MD field.
Further Explanation: When MSA/MD is NA or a valid metropolitan statistical area/metropolitan division number and the state (V285), state/county (V295), or state/county/census tract (V300) combinations are provided, there must be verification that the combinations are valid. Below are examples of the geographic combinations that may be used if it is valid for a respondent to report an MSA/MD as NA.
NA/51/NA/NA* - State
NA/51/059/NA - State/County
NA/51/059/4154.00** - State/County/Census Tract
NA/NA/NA/NA*** - State/County/Census Tract
*Though this example is an acceptable entry and will pass all validity edits (provided a valid numeric state code is entered), the preference is for the institution to provide a valid state/county combination or a valid state/county/census tract combination. In the majority of cases, an institution should be able to provide the state/county/census tract combination since every state and county has a code and the 2010 Census assigned census tract numbers to all areas.
**For the State/County/Census Tract combination, a reported census tract will always be verified. This combination is used when the property is located in a Micropolitan Statistical Area and the institution meets all the reporting criteria and is thus required to report all mortgage lending activity. (NA will always be reported in the MSA/MD column because HMDA does not use Micropolitan Statistical Area numbers). In addition, where the county is classified as small it is acceptable for a lender to code census tracts on properties in small counties as NA on the HMDA-LAR form. (If MSA/MD is reported using the valid metropolitan statistical area or metropolitan division (as appropriate) number, then all other property fields must be coded with the valid state/county/census tract combination.)
***This example is acceptable in specific cases. For instance, lenders may report NA in the property location fields associated with requests for preapprovals that are denied or if lenders opt to report preapprovals approved but not accepted. In addition, the NA combination can be reported on property located outside the metropolitan statistical area/metropolitan division in which an institution has a home or branch office, or outside any metropolitan statistical area/metropolitan division. Note, however, that if you are a bank or savings association that is also required to report CRA data, you must fully geocode the property location on your HMDA data. NA is not valid except in those cases where the property is located in a Micropolitan Statistical Area or is not located in any Metropolitan or Micropolitan Statistical Area; and in those examples, NA would only be reported in the MSA/MD column and the appropriate state, county, and census tract numbers would be reported.
Any combination of the property location reported when the MSA/MD is NA, other than those aforementioned, are incomplete; therefore, those combinations will not be valid.
EXPLANATION OF VALIDITY EDITS 285, 295, & 300 (continued)
In comprehending the logic of these Validity edits, it may be useful to begin at the census tract. If the census tract is reported by a lender, then the county and state MUST also be reported. If a county is reported, then a state MUST also be reported. A state may be reported by itself, with a county, or with a county and census tract. In reverse order, if an MSA/MD equals NA, then the acceptable combinations in the majority of cases are state only, state/county, or state/county/census tract.
If CENSUS TRACT is reported, then
ê
COUNTY must be reported, then
ê
STATE must be reported where
ê
METROPOLITAN STATISTICAL AREA/METROPOLITAN DIVISION (MSA/MD) = NA
2013 HMDA Edits iii October 10, 2012
LOAN/APPLICATION REGISTER Page ____of____ Form FR HMDA-LAR
Agency
______Reporter's Identification Number Code
Name of Reporting Institution City, State, Zip
└──┴──┴──┴──┴──┴──┴──┴──┴──┴──┘ └──┘
All columns (except Reasons for Denial) must be completed for each entry. See the instructions for details.
Application or Loan Information / Action Taken / Property Location / Applicant InformationA = Applicant CA = Co-Applicant / Type of
Pur-
chaser
of Loan / Reason
for
Denial
(optional) / Other Data
Application or
Loan Number / Date
Application
Received
mm/dd/ccyy / Loan
Type / Prop-
erty
Type / Pur-
pose / Owner
Occu-
pancy / Loan
Amount
In
Thou-
sands / Pre-
ap-
proval / Type / Date
(mm/dd/ccyy) / Five-
digit
MSA/MD
Number / Two-
Digit
State
Code / Three-
Digit
County
Code / Six-Digit
Census
Tract / Ethnicity / Race / Sex / Gross
Annual
Income
in
thou-
sands / Rate Spread / HOEPA Status / Lien
Status
A / CA / A / CA / A / CA
Example of Loan Originated Following Preapproval
L│B│-│6│8│7│4│3│9│ │ │ │ │ │ │ │ │ │ │ / 12/17/2012 / 1 / 1 / 1 / 1 / 65 / 1 / 1 / 02/23/2013 / 47894 / 51 / 059 / 4 | 2 | 1 | 9 | - | 8 | 5 / 2 / 5 / 3 | 5 | | | / 8 | | | | / 1 / 5 / 24 / 7 / N | A | - | | / 2 / 1
Example of Preapproval Request Denied
5│6│7│8│9│0│4│3│2│1│|1│2│3│4│0│9│8│7│6│5 / 06/01/2013 / 1 / 1 / 1 / 1 / 125 / 1 / 7 / 06/21/2013 / NA / NA / NA / N | A | | | - | | / 2 / 2 / 3 | | | | / 2 | | | | / 1 / 2 / 40 / 0 / 1,3 / N | A | - | | / 2 / 1
Example of Application Denied Following Preapproval
5│6│7│8│9│0│4│3│2│1│|1│2│3│4│0│9│8│7│6│5 / 03/20/2013 / 1 / 1 / 1 / 1 / 30 / 1 / 3 / 04/30/2013 / 11500 / 01 / 015 / 0 | 0 | 2 | 1 | - | 0 | 0 / 1 / 1 / 5 | | | | / 3| | | | / 2 / 1 / 20 / 0 / 4,5 / N | A | - | | / 2 / 1
│ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ / | | | | - | | / | | | | / | | | | / | | - | |
│ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ / | | | | - | | / | | | | / | | | | / | | - | |
│ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ / | | | | - | | / | | | | / | | | | / | | - | |
│ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ / | | | | - | | / | | | | / | | | | / | | - | |
│ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ / | | | | - | | / | | | | / | | | | / | | - | |
│ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ / | | | | - | | / | | | | / | | | | / | | - | |
│ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ / | | | | - | | / | | | | / | | | | / | | - | |
│ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ / | | | | - | | / | | | | / | | | | / | | - | |
│ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ / | | | | - | | / | | | | / | | | | / | | - | |
│ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ / | | | | - | | / | | | | / | | | | / | | - | |
│ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ / | | | | - | | / | | | | / | | | | / | | - | |
│ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ / | | | | - | | / | | | | / | | | | / | | - | |
│ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ / | | | | - | | / | | | | / | | | | / | | - | |
│ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ / | | | | - | | / | | | | / | | | | / | | - | |
│ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ / | | | | - | | / | | | | / | | | | / | | - | |
│ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ / | | | | - | | / | | | | / | | | | / | | - | |
│ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ / | | | | - | | / | | | | / | | | | / | | - | |
│ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ / | | | | - | | / | | | | / | | | | / | | - | |
(A) / (B) / (C) / (D) / (E) / (F) / (G) / (H) / (I) / (J) / (K) / (L) / (M) / (N) / (O) / (P) / (Q) / (R) / (S) / (T) / (U) / (V) / (W) / (X) / (Y) / (Z)
2013 HMDA Edits vi October 10, 2012
LOAN/APPLICATION REGISTER CODE SHEET
Use the following codes to complete the Loan/Application Register. All columns (except Reasons for Denial) must be completed for each entry. See the HMDA-LAR instructions in the HMDA Guide (page 10) for guidance regarding the proper use of each code listed below.
Application or Loan InformationLoan Type: (C)
1 – Conventional (any loan other than FHA, VA, FSA, or RHS loans)
2 -- FHA-insured (Federal Housing Administration)
3 -- VA-guaranteed (Veterans Administration)
4 – FSA/RHS-guaranteed (Farm Service Agency or Rural Housing Service) / Action Taken: (I)
1 -- Loan originated
2 -- Application approved but not accepted
3 -- Application denied by financial institution
4 -- Application withdrawn by applicant
5 -- File closed for incompleteness
6 -- Loan purchased by your institution
7 – Preapproval request denied by financial institution
8 – Preapproval request approved but not accepted (optional reporting) / Type of Purchaser: (V)
0 --Loan was not originated or was not sold in calendar year
1 – Fannie Mae
2 – Ginnie Mae
3 – Freddie Mac
4 – Farmer Mac
5 – Private securitization
6 – Commercial bank, savings bank or savings association
7 -- Life insurance company, credit union, mortgage bank, or finance
company
8 -- Affiliate institution
9 -- Other type of purchaser
Property Type: (D)
1 – One to four-family (other than manufactured housing)
2 – Manufactured housing
3 – Multifamily / Applicant Information
Ethnicity: (O) (P)
1 – Hispanic or Latino
2 – Not Hispanic or Latino
3 – Information not provided by applicant in mail, Internet, or
telephone application (see App. A, I.D.2.)